Key Notes
- ether.fi has proposed a $50 million treasury allocation for ETHFI token buybacks below $3.
- The program activates upon DAO approval and continues until the cap or end conditions are met.
- Technical indicators suggest ETHFI is approaching oversold territory.
ether.fi has become the latest DeFi protocol to join the growing wave of token buyback programs announced recently in the crypto market. The project’s community has proposed allocating up to $50 million from its treasury for an ETHFI token buyback, targeting accumulation whenever prices drop below $3.
If approved, the ether.fi Foundation will be authorized to execute open-market purchases of ETHFI tokens using treasury reserves. The buyback will continue until one of three conditions is met, i.e., the $50 million cap is reached, the foundation ends the program, or a future governance vote modifies the plan.
A four-day Snapshot vote will determine approval, after which buybacks will activate automatically once the price threshold is hit. All transactions will be recorded on-chain and displayed via the ether.fi Dune dashboard for full transparency.
Building on Previous Successes
ether.fi has conducted similar buyback programs in the past with DAO proposals 8 and 10, which were credited with improving liquidity and price stability. This new plan builds on that track record, introducing clearer parameters and a defined spending cap to optimize treasury management.
The foundation also aims to expand buyback capacity in proportion to protocol revenues while ETHFI trades below $3, directing surplus income toward repurchases, strengthening market confidence and reducing circulating supply.
A Growing DeFi Trend
The dYdX community also launched a three-month experimental program allocating $5–$10 million of transaction fees to DYDX token repurchases through January 2026.
Meanwhile, Chainlink’s Reserve added another 64,445 LINK tokens this week, its largest acquisition since August, pushing total holdings to around $11 million.
Also, World Liberty Financial, a Trump-linked initiative, implemented a 100% buyback-and-burn plan to permanently remove WLFI tokens from circulation. On Solana, Pump.fun has already repurchased over 3 billion PUMP tokens, worth nearly $19.6 million.
ETHFI Price Analysis: What’s Next?
At the time of writing, ETHFI is trading around $0.94, down more than 6% on the day. The token continues to trend inside a descending channel, with the lower boundary currently acting as short-term support.
ETHFI price action with momentum indicators | Source: TradingView
Based on the chart above, a breakout above the descending trendline near $1.05 could open a path toward $1.26, which aligns with the upper Bollinger Band and previous support turned resistance. Sustained momentum above this level could push ETHFI toward the $1.50–$1.60 zone.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/etherfi-50m-token-buyback-proposal/
